One financial analyst says Apple's iPad is in little danger of losing its top spot on the tablet heap to Google's newly-announced Nexus 7, as he believes the device is "just another Android-based tablet."

As expected, Google unveiled its $199 Nexus 7 tablet, the result of a partnership with Asus, on Wednesday at its Google I/O developer conference. The device, which features a quad-core CPU by Nvidia and a 1,280-by-800-pixel display, will go on sale in July.

Topeka Capital Markets analyst Brian White responded to the announcement with a note to investors saying there was "no threat here" to the iPad from the device. He mentioned Google's first Android-based hardware initiative, the Nexus One, which he said was met with "muted enthusiasm."

"We believe the combination of Apple's expanding digital grid, innovative design, unmatched aesthetics, leading App availability (with 225,000 native iPad Apps), intuitive user interface and expanding technology innovations will continue to keep the Company on top of the tablet market for many years to come," White said.

The analyst noted that the Nexus 7 is more likely to compete with Amazon's Kindle Fire. The two devices have relatively similar specs, as both are 7-inch Android tablets priced at $199. Google itself indicated in April that it was setting its sights on the low end of the tablet market, a segment that Amazon took the lead in late last year with the Kindle Fire.

White went on to call Apple's ecosystem "the magic" that will help the iPad stay on top, especially since the number of native tablet apps for Android are "an insignificant amount."

"In our view, Apple's ecosystem still remains the best in the mobile device world with over 650,000 apps in total and 225,000 apps that are native to the iPad," he said.

Topeka Capital Markets maintains a 12-month price target of $1,111 for shares of Apple with a rating of Buy.

By it's own admission, Google's Nexus 7 was rushed to market. Android chief Andy Rubin told AllThingsDon Wednesday that the company went "from zero to working product in four months."

Asus chairman Jonney Shih said that his engineers told him the project was "like torture." "They ask a lot," he said of Google. The Nexus 7 team was split up around the globe and had a 24-hour development cycle, according to Shih.

Apple likely won't have to worry that the Nexus 7 will eat into its profit share, as Rubin admitted that Google's own profit margins for the device are extremely low. ?When it gets sold through the (Google) Play store, there?s no margin,? he said. ?It just basically gets (sold) through.?

According to recent projections from IDC, the iPad will take back market share from Android this year. Apple is expected to achieve 62 percent tablet share in 2012, compared to an estimated 36.5 percent for Android.

Well gee... thanks for letting all of us sleep at night. I was getting worried that Google had something with a cheap, bottom-of-the-barrel, bad-build-quality, yet-another-cookie-cutter-Android-tablet-thingy...

I hope the recycling industry is able to reclaim all the precious metals and resources used to make all these crappy Android landfill products.

Originally Posted by AppleInsider
....as Rubin admitted that Google's own profit margins for the device are extremely low. "When it gets sold through the (Google) Play store, there's no margin," he said. "It just basically gets (sold) through."

Why would an advertising companycwantvto make money on hardware? It's the same reason broadcast television is free but still makes money. There is a lot of mobey in both sides of the advertising business.

I don't think Apple was ever worried about this. The only reason it got any press at all was Google throwing their name around. If it had been only Asus-branded, I doubt the analysts would even bother to mention it, precisely because it is just another $199 seven-inch Android tablet.

Google are quite happy to make no money from Android products. The only reason it exists is so Google has another medium for its advertising and seems a lot of people are quite happy to use badly made and inferior products f they are cheap and not made by Apple.

Even though I am a big fan of Apple products, I have to say this tablet is pretty compelling at $199. That Tegra CPU blows away the current A5 processors in the iPad. I like the fact it has GPS built in as well.

I agree that this tablet will not be serious competition to the iPad. It is the iPod Touch that is in serious trouble here. How can Apple hope to sell the current iPod Touch with an old A4 processor, 256 MB of RAM, no GPS and a tiny 3.5" screen for the same price as this 7" tablet? I fully expect Apple's 7" tablet to replace the iPod Touch. I just hope it can compete on specs with the Android Nexus tablet.

Well gee... thanks for letting all of us sleep at night. I was getting worried that Google had something with a cheap, bottom-of-the-barrel, bad-build-quality, yet-another-cookie-cutter-Android-tablet-thingy...

I hope the recycling industry is able to reclaim all the precious metals and resources used to make all these crappy Android landfill products.

You may be right, but I predict that this tablet will sell like hotcakes next year at garage sales all over the USA. People will be eyeing these like they do paintings of Elvis on black velvet, and singing fish on lacquered boards (batteries not included).

"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge

Even though I am a big fan of Apple products, I have to say this tablet is pretty compelling at $199. That Tegra CPU blows away the current A5 processors in the iPad. I like the fact it has GPS built in as well.

I agree that this tablet will not be serious competition to the iPad. It is the iPod Touch that is in serious trouble here. How can Apple hope to sell the current iPod Touch with an old A4 processor, 256 MB of RAM, no GPS and a tiny 3.5" screen for the same price as this 7" tablet? I fully expect Apple's 7" tablet to replace the iPod Touch. I just hope it can compete on specs with the Android Nexus tablet.

Compete on specs?! Compete on specs?! The only specs that mean anything to consumers are: (1) Does it have a big white Apple on the back, and (2) are there over 100,000 apps and games already in the app store? People don't even STEAL android devices!

"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge

Even though I am a big fan of Apple products, I have to say this tablet is pretty compelling at $199. That Tegra CPU blows away the current A5 processors in the iPad. I like the fact it has GPS built in as well.

I agree that this tablet will not be serious competition to the iPad. It is the iPod Touch that is in serious trouble here. How can Apple hope to sell the current iPod Touch with an old A4 processor, 256 MB of RAM, no GPS and a tiny 3.5" screen for the same price as this 7" tablet? I fully expect Apple's 7" tablet to replace the iPod Touch. I just hope it can compete on specs with the Android Nexus tablet.

The iPod Touch is not threatened at all. For one thing, the iPod Touch actually fits in pockets.

The Tegra CPU might blow away the A5, but modern OSes (especially mobile ones) do very little with the CPU. The majority of the processing work is related to the graphics, which is offloaded to the GPU, and no Android device has a GPU comparable to the GPU in the iPad 2, let alone the iPad 3.

Despite that, I do think Apple needs to be worried about the iPad. The reality is that Apple cannot be as good as their competitors.

1) Because of their business model (limited product line; HW and SW by the same vendor) they need to be far better. The multiple vendors, with millions of devices model means that 1 model may contain a certain little feature which may cover for any other deficiencies it has (e.g., the Galaxy Note gives you stylus input, which has meant it has sold reasonably well, because it is a feature a niche of people want). So Apple's offerings need to be significantly better. Fortunately, the integrated business model also means that it is far easier for Apple to innovate, so they need not fall behind in this regard.

2) Price Point. The starting iPad price is $300 more. It may be a significantly better device, but that is quite a huge price point jump. Again, Apple does not need to play in the no margin, bottom of the barrel market, but they need a slightly more competitive device. Currently, I think they aren't really in any trouble, because the iPad 2 at $400 is an effective substitute.

3) Size. The 7" size is actually quite useful to some, especially women. I have seen people who wanted an iPad, buy an Android tablet because the 7" model fits in their handbags. Without a 7" (or thereabouts) Apple is completely out of this market.

I think Apple would be wise to release an intermediate device between the iPod Touch and the iPad. A 7" device would solve their pricing issues, and complete the range, hitting all essential target markets.

Compete on specs?! Compete on specs?! The only specs that mean anything to consumers are: (1) Does it have a big white Apple on the back, and (2) are there over 100,000 apps and games already in the app store? People don't even STEAL android devices!

Both iOS and Android have well over 100,000 apps in the app store with iOS around 600,000 and Android around 500,000.

Apple has cornered the photocopiers and they have to place a product in the market with zero cost in order to have a chance and not even doing that, they succeed (example: Kindle Fire plummeting sales).

Next phase will be paying people to take their products and not even doing that will make them succeed. People will get the products and use as paper weight.

That thing is just slightly larger than the largest Android phones. Are Fandroids so dumb, that they'll carry around both a 5" phone and a 7" tablet? Wait a second, don't answer that, as I am well aware of the mindless stupidity of Fandroids, which knows no limits. At the end of the day, neither of those sizes are acceptable for doing any real tablet tasks. And for people who supposedly claim to care about specs, 16GB max is kind of lame.

That thing is just slightly larger than the largest Android phones. Are Fandroids so dumb, that they'll carry around both a 5" phone and a 7" tablet? Wait a second, don't answer that, as I am well aware of the mindless stupidity of Fandroids, which knows no limits. At the end of the day, neither of those sizes are acceptable for doing any real tablet tasks. And for people who supposedly claim to care about specs, 16GB max is kind of lame.

How aggressive. If I had the money/time/desire, I'd get one just to NOT be like you.

Social Capitalist, dreamer and wise enough to know I'm never going to grow up anyway... so not trying anymore.

Even though I am a big fan of Apple products, I have to say this tablet is pretty compelling at $199. That Tegra CPU blows away the current A5 processors in the iPad. I like the fact it has GPS built in as well.

I agree that this tablet will not be serious competition to the iPad. It is the iPod Touch that is in serious trouble here. How can Apple hope to sell the current iPod Touch with an old A4 processor, 256 MB of RAM, no GPS and a tiny 3.5" screen for the same price as this 7" tablet? I fully expect Apple's 7" tablet to replace the iPod Touch. I just hope it can compete on specs with the Android Nexus tablet.

You seem to be missing the fact that fewer suckers are blindly purchasing inferior products anymore based on their "specs." That is so pre-2007. Apple's products are successful because of their unmatched user experience and value. Nobody in the market for a super thin, pocketable iPod Touch is going to buy a crappy quality 7" tablet with no app support instead.

Even though I am a big fan of Apple products, I have to say this tablet is pretty compelling at $199. That Tegra CPU blows away the current A5 processors in the iPad. I like the fact it has GPS built in as well.

I agree that this tablet will not be serious competition to the iPad. It is the iPod Touch that is in serious trouble here. How can Apple hope to sell the current iPod Touch with an old A4 processor, 256 MB of RAM, no GPS and a tiny 3.5" screen for the same price as this 7" tablet? I fully expect Apple's 7" tablet to replace the iPod Touch. I just hope it can compete on specs with the Android Nexus tablet.

The iPod Touch actually has a rear facing camera and a retina display but yes, if Apple put out a 7" iPod Touch, they could probably bury these bottom-end slabs like the Nexus and Fire out of business.

That thing is just slightly larger than the largest Android phones. Are Fandroids so dumb, that they'll carry around both a 5" phone and a 7" tablet? Wait a second, don't answer that, as I am well aware of the mindless stupidity of Fandroids, which knows no limits. At the end of the day, neither of those sizes are acceptable for doing any real tablet tasks. And for people who supposedly claim to care about specs, 16GB max is kind of lame.

I don't think Apple was ever worried about this. The only reason it got any press at all was Google throwing their name around. If it had been only Asus-branded, I doubt the analysts would even bother to mention it, precisely because it is just another $199 seven-inch Android tablet.

I don't think anyone here is actually getting the point of the Nexus devices. They're intended as concept builds, examples of recommended hardware configurations matched to newly introduced OS versions.

Google isn't attempting to compete with any of it's licensee's with this tablet and certainly not Apple. This is a consumption device example, much too small to be used as a serious creation tool. The tablets that follow this one over the next few months will add to Google's basic Nexus7 concept model, running Android 4.1x, yet despite added features several will still hit the sub-$200 price-point. Others will play up in the more premium 9-11" tablet space with more premium pricing, but using the same general base hardware specifications with the same OS version.

It's fun for the media to proclaim Nexus devices as Google's flagship models and intended to go directly after Apple. They're not. Nexus models are used to introduce a new OS and the recommended hardware to support it.

Nexus 7 is competing with Nook & Fire for sub-$250 tablet market. They seem to be after the low-end market and digital consumption. Not sure why they would think the mass consumer would eat this up??? Did Netbook ever take off because it was cheap???

Agreed. And would like to add that Jelly Bean (Android 4.1) is more advanced than iOS 5 and possibly even iOS 6 when it comes to features.

Quote:

Originally Posted by GrangerFX

Even though I am a big fan of Apple products, I have to say this tablet is pretty compelling at $199. That Tegra CPU blows away the current A5 processors in the iPad. I like the fact it has GPS built in as well.

I agree that this tablet will not be serious competition to the iPad. It is the iPod Touch that is in serious trouble here. How can Apple hope to sell the current iPod Touch with an old A4 processor, 256 MB of RAM, no GPS and a tiny 3.5" screen for the same price as this 7" tablet? I fully expect Apple's 7" tablet to replace the iPod Touch. I just hope it can compete on specs with the Android Nexus tablet.

Agreed. And would like to add that Jelly Bean (Android 4.1) is more advanced than iOS 5 and possibly even iOS 6 when it comes to features.

When I use my iPad 2, only a few things come to mind regarding the device itself: The impressive screen, battery life, and its build quality. I think most consumers have the same criteria, so processors, OS features, etc. are immaterial to the mass market. Sure, some may complain, but most don't know how to implement the features currently in the device (e.g., gestures, app switching, etc.).

Or at any other price point either.
If they can't even get the device's dimensions right, then I can't see them getting the more complicated stuff right either.
And, seriously, where's the kickstand and stylus?
(>_<)

Slightly off topic but ... Re the kick stand, the more I use Windows 8 the more I suspect the kickstand will be used literary....

From Apple ][ - to new Mac Pro I've owned them all.Long on AAPL so biased"Google doesn't sell you anything, Google just sells you!"

Clearly this device is targeted at stopping the Amazon Fire (which is sucking what little oxygen there is out of the 7" tablet market), but, frankly, except for the die-hard Google geeks, I think the few consumers tempted by small, cheap tablets are more likely to be attracted by the Amazon device than this.